Save income tax through marriage
As soon as the festival of Diwali ends, the wedding season will start in the country. The market will be decorated from sherwani to lehengas. From event managers to wedding planners, people will start planning for pre-wedding shoots. In Indian tradition, marriage is recognized as the union of two souls, but do you know that marriage can also help you in saving income tax. Let us know how…?
With marriage in India, you also get many legal rights. Some of these rights also give you financial benefits. Some of these rights are such that they help you in saving income tax. In these ways, you and your partner together can avail many exemptions in income tax. These benefits are available only to married couples.
Income tax is also saved through marriage
There are many provisions in the Income Tax Act, which help married couples to save tax. 5 such tax saving methods are mentioned below.
- Home Loan: Which couple doesn’t dream of owning their own home? But when you buy a house as a couple by taking a joint home loan, you get income tax benefits. If your joint home loan is 50:50, then the tax exemption you get every year on principal amount payment of home loan under Section 80(C) increases from Rs 1.5 lakh to Rs 3 lakh. As an individual, the maximum limit of Section 80(C) is Rs 1.5 lakh. On the other hand, if you have taken a home loan only after marriage, then under Section 24(B), the tax exemption on interest payment on home loan up to Rs 2 lakh is also doubled. You can avail income tax exemption on interest payments up to Rs 4 lakh every year.
- Medical or Health Insurance: You also get income tax benefit by taking health insurance. Under Section 80(D) of the Income Tax Act, you get income tax exemption on premium payment for health insurance up to a maximum of Rs 25,000. You get this exemption only when one of the spouses is working. On the other hand, if both of you are taxpayers, then you can save tax every year on the premium of up to Rs 50,000 for family health insurance.
- Children’s education: Another tax benefit for married couples is available on children’s education. You also get this exemption under Section 80(C). If both of you are taxpayers then this exemption increases to Rs 3 lakh.
- Leave Travel Allowance: If you and your partner are both taxpayers, both are working. Then you can enjoy a total of 8 tours together in a period of four years and also save income tax. Although there is no fixed limit, it depends on your salary package. However, you get tax benefits on vacation expenditure.
- Tax saving on property: When you move on from one property and invest in another property. Then as a couple you can take advantage of income tax exemption. If you buy another property as an individual, then it becomes taxable. Whereas if you buy another property in the name of your partner and if there is no housing property already in his name, then you can save tax by showing him as a taxpayer.
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